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The truth may shock you
Against a 'good' player I generally fold to push like this.
In this case you did the right thing imo.
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Seeing other players cards can't be true, if it is online poker as we know it wouldn't exist - the NL2000 tables would be filled with kids winning every single hand they played.
A little background on the Villian - he's pretty LAG and erratic, I think he was tilted when he made this play, however he had just showed up at this table a couple hands earlier (I saw him on other tables though). There are a select few people I would fold to a push like this (at these stakes), but they are few and far between (but multi-tabling everywhere! heh).